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  • Thu. Aug 18th, 2022

Wait for a retracement as Near Protocol breaks above key resistance

ByNdasi Tata

Aug 6, 2022
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1659732156127 f3686d94 be9f 42c2 af34 b56e987056e4

  • Near Protocol has jumped above the $4.6 resistance level

  • The token is among the top gainers among the top 100 cryptocurrencies

  • RSI reading is at the overbought zone

Near Protocol NEAR/USD has jumped by 16% in the past 24 hours. The bullish sentiment is because of significant interest among investors in the protocol lately. Its trading volumes are up 47% in the past day at $681,243,479.

Near Protocol is a decentralized smart contract network that rivals Ethereum. It differentiates itself with the use of sharding technology to increase transaction throughput. Sharding segments a network infrastructure and lets nodes handle a fraction of it.

Transaction speeds have been a major challenge to the larger blockchain networks. Near Protocol is making a name for itself in space. It is attracting lucrative blockchain projects that are boosting its total value locked. 

One such project is Sweatcoin, a protocol that mints tokens with the steps taken by users. The funds flowing into the project have pushed NEAR Protocol’s TVL to $388 million. A look at the short-term technical outlook affirms a strong bullish momentum in Near Protocol. 

NEAR breaks above key resistance but is currently overbought

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Source: TradingView

From the 4-hour technical chart above, NEAR has broken above the $4.6 resistance. The cryptocurrency had failed in the last four attempts to pierce above the level. Further, the 20-day and 50-day moving averages have joined the support.

However, NEAR could be preparing for a short-term retracement. The RSI is at the overbought zone. At 72, the momentum indicator is at the highest level since July 29.

Concluding thoughts

NEAR token is under a strong bullish momentum. The fundamentals around sharding technology and its fast and cheaper transaction speeds boost popularity. Nonetheless, the token could be facing a retracement, with RSI reading currently at the overbought zone. Investors should wait for the retracement before entering a long position.

The post Wait for a retracement as Near Protocol breaks above key resistance appeared first on CoinJournal.

Ndasi Tata

Ndasi Tata is a Cameroonian-born Bitcoin entrepreneur and former state journalist who's also known for being a Bitcoin and Blockchain advocate. He's a crypto lover and reporter and has promoted several crypto projects within the African Continent. He uses a variety of social media and online channels. In addition to running a successful Facebook page with thousands of fans, he also promotes blockchain and bitcoin development initiatives on the well-liked YouTube channel #cryptoafrica-now. He earned an M.Sc. from the University of Nicosia in Cyprus in Blockchain and Digital Currency. At the University of Nicosia, Andreas Antonopoulos, Ph.D., and Antonis Polemitis, Ph.D., serve as role models.

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